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Andy Zaky

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  • Warning Signs Suggest Market Headed for Another Collapse [View article]
    What you and everyone who disregards technicals fail to understand is that technicals don't predict future price movements because of something magically inherent in the charts.

    Instead, technicals get their validity from the hundreds and thousands of market participants, fund managers and day traders who follow them. When everyone sees the same thing in the charts and acts in the same way, it becomes a self-fulfilling prophecy.

    Its an extremely narrow, obtuse, one-sided view of the markets to disregard technicals especially when the majority of big money traders and fund managers follow them. Don't knock what you don't know. Instead, you should consider looking into why so many people follow technicals.
    Aug 2, 2010. 02:31 PM | 40 Likes Like |Link to Comment
  • Apple's Mini 'Flash Crash' Today [View article]
    3% is nothing. I agree. The problem is in how it happened. Losing 3% in the middle of the day in a few moments is an issue. It raises questions regarding market stability. Why don't people get this? It's not a percentage loss issue.
    Feb 10, 2011. 03:48 PM | 37 Likes Like |Link to Comment
  • Apple Bears Come Out of the Woodwork [View article]
    I'm not invested in Apple. So try not extrapolate some ulterior motive. Though some might find this a bit naive, I strive to reveal the truth in its purest form. I hope by doing so, my integrity will be rewarded in readers who trust me to do so. That's why I have no problem burning an analyst when his activities are very suspicious where other journalists might look the other way.
    Feb 22, 2011. 03:02 PM | 30 Likes Like |Link to Comment
  • Apple's Mini 'Flash Crash' Today [View article]
    The comparison is not in terms of percentages. Obviously no one debates that. The comparison is however, found in the nature of the selling pressure. We saw panic driven selling pressure with gaps in the selling.

    That shouldn't happen.
    Feb 10, 2011. 03:39 PM | 21 Likes Like |Link to Comment
  • Apple's Mini 'Flash Crash' Today [View article]
    IN terms of what happened, I think that part is clear by the volume spike. We saw millions of shares being sold inside of a few minutes. It was simply sloppy selling. Instead of selling shares in blocks over the course of the day or over the course of a few days, some seller(s) just wanted out. SO they threw their whole block at the bid. That is irresponsible selling.

    In terms of whether this can happen again, it definitely will happen as long as people have the capability to sell millions of shares like that at the bid.

    Remember, specialists line up big buyers with big sellers so that if someone wants to sell some huge 1m-2m block, they are finding a buyer for that block so the stock doesnt' go down right? It's a 1 tick move on teh entire block.

    That's not what we got here. What we got is some institution wanting to sell 1-2 million blocks in the open market.

    Same thing happened on the flash crash with the aid of arbitrage and e-mini futures. This just happened on a much smaller scale and with one stock.

    But the fact that it CAN happen, means it can happen at a wider scale and on the broader market. That is what makes today's event important.
    Feb 10, 2011. 04:19 PM | 20 Likes Like |Link to Comment
  • Are Apple Shares Overvalued or Undervalued? [View article]
    "We now know who is paying attention to the buzz around Apple, but what is this company actually worth? One of the best indicators is the P/E ratio; Apple’s historical average ratio is higher than its current ratio of 16.51, which suggests that the stock price is undervalued at this point in time. It is also helpful to compare this ratio to others in the industry. A P/E ratio of 16.51 is in the 61st percentile of the technology sector. This means that, compared with its peers, Apple is slightly overvalued; though this overvaluation is minor at best."

    This paragraph is misleading at best. What if Apple was growing at 75,000% a year and it's peers were growing at 3% a year. Does the same analysis apply? What if Apple is expected to grow at a pace of 50,000% a year for the next 5 years. Suppose the average P/E in the industry was 13 and Apple was trading at a 390 P/E ratio, would it still be more overvalued than it's peers in light of the 50,000% growth rate?

    Cannot discuss relative valuation without discussing growth rates, total cash, enterprise value, cash flow, price to sales, price to book, 5-year expected growth rates, Price to Expected to Forward Earnings (PEG) and many more variables.

    A stock trading at a 750,000 P/E ratio can be cheaper than a stock trading at a 3 P/E ratio. If the stock trading at a 750,000 P/E Ratio is growing at 7,000,000% a year and the stock trading at a 3 P/E ratio is growing at a pace of -20% a year, the 3 P/E ratio stock is overvalued.

    Meh. Nevermind. I think you need to do a little more research before throwing out terms like overvalued or undervalued.
    May 13, 2011. 05:51 PM | 19 Likes Like |Link to Comment
  • Apple: Why I Am Strongly Bearish - Take Two [View article]
    Long-term technicals are nonsense. That's the biggest problem with a lot of writers at Seeking Alpha. They simply cannot grasp very simple concepts.

    Let's just ignore the entire fundamental situation with Apple and decide that the long-term technicals suggest that Apple is going to $20 a share even though it will have $300 a share in cash by 2015. Good call.
    Aug 26, 2011. 11:11 AM | 14 Likes Like |Link to Comment
  • Apple's Valuation: The One Article Every Investor Should Read [View article]
    Yeah Apple needs to do a 10-1 stock split. It's really obvious. If they did that, the stock would skyrocket. We would see Apple reach $50 on a 10-1 stock split far sooner than it will reach $500 from the current level.

    Apple should do the split here and now .
    Jun 7, 2011. 12:13 PM | 14 Likes Like |Link to Comment
  • Apple Fiscal Q1 2012: The Biggest Earnings Blowout In History? [View article]
    I'm still young so I "can be excused for not knowing how or why Wall Street truly works." That's funny. You obviously know very little about me. I would be truly impressed if you come here and apologize after Apple reports fiscal Q1.
    Dec 16, 2011. 07:29 PM | 13 Likes Like |Link to Comment
  • Warning Signs Suggest Market Headed for Another Collapse [View article]
    We haven't broken out of anything. 1 Day doesn't make a trend my friend. We'll see a pull back after a few days grind up to the upper trend line.
    Aug 2, 2010. 02:03 PM | 13 Likes Like |Link to Comment
  • Warning Signs Suggest Market Headed for Another Collapse [View article]
    Aug 2, 2010. 02:05 AM | 13 Likes Like |Link to Comment
  • Zaky: Why Apple's Guidance Is Still Important [View article]
    Thanks everyone for the generous and kind comments! It's flattering. Thank you.
    Apr 25, 2011. 09:08 PM | 12 Likes Like |Link to Comment
  • A Huge Rally for Equities Coming in 2011 [View article]
    Even more intriguing is your inability to understand the analysis. Notice the title says Huge Rally coming in 2011? Where do I say anything about how it MAY rise or MAY fall? I noted that IF the market breaks 1200, then its going much higher, and IF it breaks below $117 its going much lower?

    Nothing about which is going to happen. But break 1200 is a buy, break below 1170 is a sell, everything in between is uncertain. Jesus do you guys actually invest your own money? P
    Nov 5, 2010. 01:40 PM | 12 Likes Like |Link to Comment
  • Warning Signs Suggest Market Headed for Another Collapse [View article]
    Well I'm all cash. I only go short when the technicals suggest that its profitable to do so.
    Aug 2, 2010. 05:24 AM | 12 Likes Like |Link to Comment
  • Warning Signs Suggest Market Headed for Another Collapse [View article]
    Well yeah. The flag is on the VIX not the VXX. The VXX which is an ETF based on the VIX is not a perfect representation of what's going on in the volatility market. But if the VIX turns, so does the VXX.
    Aug 2, 2010. 03:45 AM | 12 Likes Like |Link to Comment